The Vancouver Stock Exchange was a stock exchange based in Vancouver Canada, explains Investopedia. The exchange merged with other smaller Canadian stock exchanges in 1999 to create the Canadian Venture Exchange, which became the TSX Venture Exchange after being bought out by TMX Group in 2001, reports the Financial Post.Continue Reading
The Vancouver Stock Exchange started in 1907, according to The History of Metropolitan Vancouver. It initially based itself at 849 West Pender. Exploration companies and companies with small market capitalizations dominated the Vancouver exchange, states Investopedia. Many of these companies were not particularly successful, bringing poor returns and hurting the reputation of the exchange; however, the exchange did list approximately 2,300 stocks.
The exchange also experienced problems with floating point calculations leading to major flaws in index readings, states Investopedia. Despite efforts to shake its poor image, many investors across North American considered the exchange a home of scams and extremely risky investments, reported The Seattle Times in 1990.
The Canadian Venture Exchange reached a market capitalization of over $100 billion before its takeover by TMX Group, reports the Financial Post. The TSX Venture Exchange fares less well, as of 2015, and continues to be dominated by small mining and oil exploration firms that have trouble gaining investment and are often unsuccessful. Problems from the 2008 Recession continue to make investors reticent about high-risk small firms.Learn more about Investing